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| Tata Steel: Port Talbot blast furnaces to close with 3,000 expected job losses | |
| (32 minutes later) | |
| Both the blast furnaces in the Port Talbot works are to close in a transition to electric arc furnaces | Both the blast furnaces in the Port Talbot works are to close in a transition to electric arc furnaces |
| Tata Steel is to push ahead with plans to close both its blast furnaces in Port Talbot with the expected loss of 3,000 jobs UK-wide, the BBC understands. | |
| Most are expected to go by September, with the majority in Port Talbot where the steelworks will be transitioned to a greener electric arc furnace. | Most are expected to go by September, with the majority in Port Talbot where the steelworks will be transitioned to a greener electric arc furnace. |
| Unions called it a "crushing blow" and the "worst-case scenario". | Unions called it a "crushing blow" and the "worst-case scenario". |
| The UK government said it will support employees and the local economy. | The UK government said it will support employees and the local economy. |
| Tata Steel currently employs 8,000 people, with about 4,000 based at the UK's largest steelworks in Port Talbot, which has two coal powered blast furnaces. | Tata Steel currently employs 8,000 people, with about 4,000 based at the UK's largest steelworks in Port Talbot, which has two coal powered blast furnaces. |
| The BBC has been told the first job losses are likely to begin in April, with more to follow in September. | The BBC has been told the first job losses are likely to begin in April, with more to follow in September. |
| Tata Steel workers fear year of uncertainty | Tata Steel workers fear year of uncertainty |
| Q&A- Tata Steel's decarbonisation plans | Q&A- Tata Steel's decarbonisation plans |
| Steelworkers frightened by Tata job loss reports | Steelworkers frightened by Tata job loss reports |
| Listen: Stephen Kinnock discusses the plans | Listen: Stephen Kinnock discusses the plans |
| Tata Steel's decision - set to be formally announced at 11:30 GMT on Friday - follows a meeting between company executives and the Community, GMB and Unite unions. | Tata Steel's decision - set to be formally announced at 11:30 GMT on Friday - follows a meeting between company executives and the Community, GMB and Unite unions. |
| Sources said Tata rejected the union's proposal to avoid redundancies by keeping one blast furnace going during the transition. | Sources said Tata rejected the union's proposal to avoid redundancies by keeping one blast furnace going during the transition. |
| The Indian-owned firm will instead spend £1.25bn - including a £500m UK government subsidy - on its move to a method of steelmaking that will cut carbon emissions and stem financial losses on its UK operations of £1m a day. | The Indian-owned firm will instead spend £1.25bn - including a £500m UK government subsidy - on its move to a method of steelmaking that will cut carbon emissions and stem financial losses on its UK operations of £1m a day. |
| Hollywood actor Michael Sheen says the steelworks are Port Talbot's North Star | |
| Hollywood actor Michael Sheen says the steelworks are Port Talbot's North Star | |
| "With a little bit of reflection I think a lot of people will come to terms with it over the weekend and the next week or two," said Shaun Spencer, a 38-year-old electrical engineer at the site. | "With a little bit of reflection I think a lot of people will come to terms with it over the weekend and the next week or two," said Shaun Spencer, a 38-year-old electrical engineer at the site. |
| It will be most difficult for "technical people like the electricians, the fitters," he explained. | It will be most difficult for "technical people like the electricians, the fitters," he explained. |
| "There's going to be a lot of high-quality jobs gone, and I don't know where they're going to be replaced," he added. | "There's going to be a lot of high-quality jobs gone, and I don't know where they're going to be replaced," he added. |
| The company is planning to replace the blast furnaces - which produce new steel from iron ore - with an electric arc furnace that produces steel from scrap metal. | The company is planning to replace the blast furnaces - which produce new steel from iron ore - with an electric arc furnace that produces steel from scrap metal. |
| Tata Steel worker Shaun Spencer says a lot of "high-quality jobs" are going | |
| It will be more environmentally friendly to operate, but require a smaller workforce. | It will be more environmentally friendly to operate, but require a smaller workforce. |
| A UK government spokesperson said: "We are determined to secure a sustainable and competitive future for the UK steel sector." | A UK government spokesperson said: "We are determined to secure a sustainable and competitive future for the UK steel sector." |
| They added support for staff included a transition board with £80m in funding from UK government and £20m from Tata Steel. | They added support for staff included a transition board with £80m in funding from UK government and £20m from Tata Steel. |
| But Stephen Kinnock, Labour MP for Aberavon, urged Tata Steel and the UK government to rethink their approach and adopt the union's plan. | But Stephen Kinnock, Labour MP for Aberavon, urged Tata Steel and the UK government to rethink their approach and adopt the union's plan. |
| "By pursuing a narrow electric arc furnace-only model, Tata Steel will be unable to seize the commercial opportunities of the future, while at the same time leaving Britain more dependent on imported steel from countries whose governments won't always have Britain's best interests at heart," he said. | "By pursuing a narrow electric arc furnace-only model, Tata Steel will be unable to seize the commercial opportunities of the future, while at the same time leaving Britain more dependent on imported steel from countries whose governments won't always have Britain's best interests at heart," he said. |
| Wales' Economy Minister, Vaughan Gething said: "This is not just an issue for Wales, steel is a sovereign asset and should be treated as such by the UK government." | Wales' Economy Minister, Vaughan Gething said: "This is not just an issue for Wales, steel is a sovereign asset and should be treated as such by the UK government." |
| But the Welsh Secretary David TC Davies said: "Tata were always very clear - that they were either going to close the plant completely and that would've cost 8,000 jobs, or that they might be able to save jobs through an arc furnace. | But the Welsh Secretary David TC Davies said: "Tata were always very clear - that they were either going to close the plant completely and that would've cost 8,000 jobs, or that they might be able to save jobs through an arc furnace. |
| "That's why we've done everything we can to protect as many jobs as we can through putting up the money for the arc furnace." | "That's why we've done everything we can to protect as many jobs as we can through putting up the money for the arc furnace." |
| BBC Wales Business Correspondent has been in Port Talbot where thousands of steel workers face redundancy | BBC Wales Business Correspondent has been in Port Talbot where thousands of steel workers face redundancy |
| BBC Wales Business Correspondent has been in Port Talbot where thousands of steel workers face redundancy | BBC Wales Business Correspondent has been in Port Talbot where thousands of steel workers face redundancy |
| Huw Thomas, business correspondent in Port Talbot | Huw Thomas, business correspondent in Port Talbot |
| It's a bright winter's day in Port Talbot but the mood here is incredibly dark. | It's a bright winter's day in Port Talbot but the mood here is incredibly dark. |
| The news emerging from the meeting in London has shocked people, some of whom have stopped to ask journalists outside the steelworks for the latest information. | The news emerging from the meeting in London has shocked people, some of whom have stopped to ask journalists outside the steelworks for the latest information. |
| The rejection of the union's plan, and a decision to press ahead with the sudden closure of the blast furnaces, represents the worst case scenario for the workforce and the community which depends on Tata Steel. | The rejection of the union's plan, and a decision to press ahead with the sudden closure of the blast furnaces, represents the worst case scenario for the workforce and the community which depends on Tata Steel. |
| How quickly the plan is implemented, and how much support can be offered to the workforce, are just some of the questions that people here want answered. | How quickly the plan is implemented, and how much support can be offered to the workforce, are just some of the questions that people here want answered. |
| How have unions reacted? | How have unions reacted? |
| Unions will consult their members on how to respond to job losses, with industrial action not being ruled out. | Unions will consult their members on how to respond to job losses, with industrial action not being ruled out. |
| Sources said Tata accepted a union plea to keep the hot strip mill open over a transition period, supporting hundreds more jobs. | Sources said Tata accepted a union plea to keep the hot strip mill open over a transition period, supporting hundreds more jobs. |
| But Sharon Graham, general secretary of Unite, accused Tata Steel of "playing games with people's livelihoods". | But Sharon Graham, general secretary of Unite, accused Tata Steel of "playing games with people's livelihoods". |
| "Whatever and however they announce their plans for Port Talbot, Unite will fight tooth and nail to defend steel workers and our steel industry," she said. | "Whatever and however they announce their plans for Port Talbot, Unite will fight tooth and nail to defend steel workers and our steel industry," she said. |
| She added the UK government "now needs to step in and step up". | She added the UK government "now needs to step in and step up". |
| Alan Coombs, a Community union representative, said it will be "disastrous" if the plans go ahead. | Alan Coombs, a Community union representative, said it will be "disastrous" if the plans go ahead. |
| Tata Steel employs about 4,000 people at its site in Port Talbot | Tata Steel employs about 4,000 people at its site in Port Talbot |
| "It's a difficult situation," he said. | "It's a difficult situation," he said. |
| "The worry's turning to anger, there's a lot of anger." | "The worry's turning to anger, there's a lot of anger." |
| "Large scale job losses would be a crushing blow to Port Talbot and UK manufacturing in general," said GMB boss Charlotte Brumpton-Childs. | "Large scale job losses would be a crushing blow to Port Talbot and UK manufacturing in general," said GMB boss Charlotte Brumpton-Childs. |
| "It doesn't have to be this way - unions provided a realistic, costed alternative that would rule out all compulsory redundancies. | "It doesn't have to be this way - unions provided a realistic, costed alternative that would rule out all compulsory redundancies. |
| "This plan appears to have fallen on deaf ears and now steelworkers and their families will suffer." | "This plan appears to have fallen on deaf ears and now steelworkers and their families will suffer." |
| What does it mean to the community? | What does it mean to the community? |
| Port Talbot's history of steel making goes back more than a century, but the current plant was built in the 1950s. | Port Talbot's history of steel making goes back more than a century, but the current plant was built in the 1950s. |
| In its heyday it employed 20,000 people, but even today, with a workforce of around 4,000, it remains a key economic and cultural presence for the town. | In its heyday it employed 20,000 people, but even today, with a workforce of around 4,000, it remains a key economic and cultural presence for the town. |
| The plant's workers have sports teams and even hold Christmas pantomimes and Tata sponsors local activities like the recent Richard Burton 10k run. | The plant's workers have sports teams and even hold Christmas pantomimes and Tata sponsors local activities like the recent Richard Burton 10k run. |
| But it's a significant contributor to the wider Welsh and UK economies too - Tata said that in 2020-21 it contributed 3% of the total Welsh economic output and it paid average salaries that were 36% higher than the UK average. | But it's a significant contributor to the wider Welsh and UK economies too - Tata said that in 2020-21 it contributed 3% of the total Welsh economic output and it paid average salaries that were 36% higher than the UK average. |
| What did the unions propose? | What did the unions propose? |
| Unions produced their own alternative plan which recommended at least one blast furnace remained in Port Talbot until the new electric arc furnace was ready to come online. | Unions produced their own alternative plan which recommended at least one blast furnace remained in Port Talbot until the new electric arc furnace was ready to come online. |
| Its plan suggested around 700 jobs would go, but two of the unions were confident that this figure could be achieved through voluntary redundancies. | Its plan suggested around 700 jobs would go, but two of the unions were confident that this figure could be achieved through voluntary redundancies. |
| A third union, Unite, had originally backed this plan but later withdrew its support. | A third union, Unite, had originally backed this plan but later withdrew its support. |
| Instead, it proposed its own broader plan to encourage greater use of British-made steel and more investment in existing operations. | Instead, it proposed its own broader plan to encourage greater use of British-made steel and more investment in existing operations. |
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| Related Topics | Related Topics |
| Wales | Wales |
| Wales business | Wales business |
| Port Talbot | Port Talbot |
| Tata Group | Tata Group |